6 questions reported in Silver Point Capital interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
Easy · Medium
Hard
Model builds
Built in the spreadsheet grid
Recovery analysis, capital structure relative value and covenant leakage. 5 questions
Asked to ensure candidates do not quote yield without thinking about price and recovery.
A distressed bond trades at 60 and yields 18%. Why might the yield be misleading?
Asked because cheap credit can remain cheap for years without a catalyst.
A bond looks cheap at 700bp spread. What catalysts could make the spread tighten?
A quantitative recovery question for credit hedge fund interviews.
A company has $200m secured debt and $300m senior unsecured notes. Reorganisation value is $350m before fees. Estimate unsecured recovery.
A claim-selection case used by credit funds to test whether an analyst maps who actually owns assets and cash flow.
A parent holding company has a $300m bond. Its operating subsidiary owns all assets, generates $80m of EBITDA, and has $400m of secured debt. The holdco owns only the subsidiary's equity. Explain why…
A modern credit question on why documentation can dominate enterprise value.
What is liability management risk and how does it affect a credit hedge fund investment?
Deal break risk, spread maths, regulatory timelines and downside to unaffected. 1 question
A senior event-driven credit discussion testing whether you can analyse a liability-management transaction from both tendering and holdout perspectives.
An issuer offers unsecured bondholders $70 of new secured notes for every $100 principal tendered. If at least 90% tender, non-tendering bonds will be structurally subordinated and you estimate their…
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with Silver Point Capital.